SHOWS: HONG KONG, CHINA (JANUARY 15, 2014) (REUTERS - ACCESS ALL)

JEAN-YVES CHOW, ASSOCIATE DIRECTOR, TRADING COMMODITY FINANCE, RABOBANK

1. (QUESTION GRAPHIC)

'Which agro-commodities do you see an abundance of supply in for 2014?'

2. JEAN-YVES CHOW SAYING:

'Well overall yes, Rabo sees the commodities in agri to be rebuilding. This is mainly the case for corn, soya bean and absolutely for a lot of these commodities. What's happening is we have a continuity of rebuilding from last years. So overall the key commodities are going down. So if you take one by one, corn is definitely rebuilt by the U.S. supply. So they were adding stocks, or we are talking about forty five millions of tons to be carried over from the U.S. For soybean, it's definitely South America, the key driver. We are expecting a hundred and forty nine millions overall bringing to the stocks. And the last one is adding from commodities, which is adding a surplus.'

3. (QUESTION GRAPHIC)

'What is your outlook for global sugar demand and prices?'

4. JEAN-YVES CHOW SAYING:

'Yeah, I agree. 2014 we still see a surplus in sugar, but definitely the surplus is narrowing down. We are coming to be a rebalancing in terms of stocks. The demand is still increasing slightly, but the key surplus, the key situation to rebalancing the surplus is the supply, they have been more disciplined on supply. So price, we have a little opportunity to upside. So today we are circa seventeen cents per pound, but we expect the second half of the year to be eighteen cents per pound.'

5. (QUESTION GRAPHIC)

'What is your outlook for global wheat demand and prices?'

6. JEAN-YVES CHOW SAYING:

'Yes we expect a hundred million tons of wheat from India, which is a great improvement. So what's going on with excess surplus in productions where government starts putting incentive for exports to release some space for coming harvest in their pool. So that will give extra flow to the market and that will push down the price.'

7. (QUESTION GRAPHIC)

'What is your outlook for soybeans in 2014?'

8. JEAN-YVES CHOW SAYING:

'I think soybean will be definitely the major loser. We expect probably a decline from price from about eighty percent. From now, about thirteen U.S. dollar moving to ten point seven. This is mainly from the U.S., mainly from the U.S. but also most importantly from South America. We expect the supply of South America, which is coming for export in quarter two to really start pushing down the price.'

9. (QUESTION GRAPHIC)

'How are higher supplies of agro-commodities going to impact futures prices?'

10. JEAN-YVES CHOW SAYING:

'Yes, definitely overall the agri-supply surplus in a lot of these major commodities will definitely put the drawing price moving down. So we are having a down one, we are far from the agflations that we see two years ago. But if you look at the farmers, I don't think they would stop planting. There are a lot of investments been done on the exporting countries, it's a cycle that we know in the soft commodity in Rabobank. So what we see is there will probably a bit less investment on land this year, most cautious on the development, but overall we see a growing trade of import and export on the soft commodities.'